Bitcoin and Ethereum had seen a decline in prices following their peak in March 2024. Bitcoin reached new all-time highs of approximately $73,800 but then experienced a sharp drop below $50,000 in early August. Ethereum was also not immune to this downtrend, falling to as low as $2,100 by August 5. Although there were some price rebounds afterward, the upward momentum has been uncertain, raising doubts about the sustainability of the positive trend.
Bitcoin Hash Rate on the Rise: Potential End of Miner Capitulation?
Despite the recent market fluctuations, on-chain data suggests optimistic developments for Bitcoin and Ethereum, hinting at a potential resurgence in a bullish trend to confirm the gains made in the first quarter of 2024.
According to CryptoQuant analysts, the Bitcoin hash rate has been increasing, indicating a possible recovery in miner confidence after the capitulation observed in July. The network hash rate recently hit record highs, reflecting miners’ investments in upgrading their equipment to enhance competitiveness and demonstrate positive sentiment towards future prospects.
Historically, the cessation of miner capitulation has often preceded significant price surges, hinting at the possibility of Bitcoin prices surpassing $60,000 and overcoming local resistance at $63,000 with reduced selling pressure from miners.
Ethereum Enthusiasts Driving Price Momentum
There are also positive indicators for Ethereum, with analysts noting that ETH could be gearing up for an upward trend. Despite struggles to recover from losses on August 4 and 5, there is potential for a price increase if bulls manage to surpass the $2,800 liquidation line, paving the way for a climb to $3,500.
The rising Ethereum Taker Buy Sell ratio signifies growing buying pressure, which is favorable for bullish momentum. Moreover, the increase in open interest across leveraged positions in Ethereum futures trading platforms indicates a growing investor confidence, potentially fueling a rally in the near future.
